CORRECTION: PetroChina-Pertamina to meet regent to solve dispute over Sukowati field
Wednesday, April 27 2005 - 04:49 AM WIB
PetroChina-Pertamina JOB?s officials plan to meet with top officials from the Bojonegoro regency, East Java in order to solve the dispute over the Sukowati field.
?The meeting will be held this evening. We are optimistic that the meeting will be successful,? Budi Setiadi, administration vice president of PetroChina, told Petromindo.Com on Wednesday.
The Bojonegoro regency administration has barred the PetroChina-Pertamina joint operating body (JOB) from continuing drilling activities at the Sukowati 3-4 wells following the joint venture?s rejection of the regency?s request for a 10 percent stake in the field.
The joint venture had rejected the regency?s request on the grounds that the field was not a new development field.
The regency however insisted that it was a new development field and thus the regency had the right to take a 10 percent stake in the field.
Based on the existing regulations, oil and gas contractors are obliged to offer a 10 percent stake in their fields to the local administration once they start developing the fields.
The joint venture began production activities in August, last year with a capacity of 7,000 barrels per day. (Godang)